Correlation Between Dollar General and Maplebear Common

Can any of the company-specific risk be diversified away by investing in both Dollar General and Maplebear Common at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dollar General and Maplebear Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dollar General and Maplebear Common Stock, you can compare the effects of market volatilities on Dollar General and Maplebear Common and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dollar General with a short position of Maplebear Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar General and Maplebear Common.

Diversification Opportunities for Dollar General and Maplebear Common

-0.41

Correlation Coefficient

Dollar General  Maplebear Common

Very good diversification

The 3 months correlation between Dollar and Maplebear is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dollar General and Maplebear Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear Common Stock and Dollar General is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dollar General are associated (or correlated) with Maplebear Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear Common Stock has no effect on the direction of Dollar General i.e., Dollar General and Maplebear Common go up and down completely randomly.

Pair Corralation between Dollar General and Maplebear Common

Allowing for the 90-day total investment horizon Dollar General is expected to under-perform the Maplebear Common. But the stock apears to be less risky and, when comparing its historical volatility, Dollar General is 1.52 times less risky than Maplebear Common. The stock trades about -0.06 of its potential returns per unit of risk. The Maplebear Common Stock is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,589  in Maplebear Common Stock on August 30, 2024 and sell it today you would earn a total of  755.00  from holding Maplebear Common Stock or generate 21.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Dollar General  vs.  Maplebear Common Stock

Dollar General

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dollar General has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Maplebear Common Stock

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear Common Stock are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Maplebear Common unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dollar General and Maplebear Common

The main advantage of trading using opposite Dollar General and Maplebear Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar General position performs unexpectedly, Maplebear Common can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Maplebear Common will offset losses from the drop in Maplebear Common's long position.

The idea behind Dollar General and Maplebear Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.